Tuesday, July 17, 2012
Sen. Tom Coburn: How Both Parties Bankrupted America: How to Return to Limited Government
To put it simple the United States now has a 16T$ National Debt, up from 4T$ in 2001 and now a 2T$ Budget Deficit. Because we've spent way too much money on things we've shouldn't be spending money on and to make it worse we've borrowed trillions of dollars to pay for it. And of course the "Great Recession" by itself has added trillions of dollars to the debt, because of the lost revenue to the Federal Government. And Uncle Sam because of the "Great Recession" not cutting the budget or raising taxes to make up for the lost revenue. So to get our debt and deficit under control, we need to first stop the bleeding, stop borrowing and stop spending money on things the Federal Government doesn't need. Or shouldn't be spending money on things, like 500B$ for Medicare Advantage back in 2003 and borrowed 500B$ to pay for that. Or borrow over a trillion dollar for the War in Iraq in 2003 and have fought that War based on false evidence. Since 1950 the Federal Government has averaged 18-21% of our GDP, we are now at 24-25% and we've borrowed most of that new Federal Spending. So we have to stop doing that, we need a more efficient and Cost Effective Federal Government and we can get our debt and deficit under control.
So to get our debt and deficit under control as far as making cuts and reforms, I would start with entitlements and the Defense Budget. We spend roughly 200B$ a year on defending Developed Nations around the World that can afford to defend themselves, lets stop doing that and turn their defense over to them. Lets get out of Europe, Saudi Arabia, Japan and Korea, lets get Medicaid under control so the States can afford to pay for it. Lets make it Self Financed and turn it over to the States and the same thing with Medicare, Juvenile Health Insurance, Unemployment Insurance and Social Security. All of these programs should be Self Financed paid for by the people who use them and our Anti Poverty Programs, again should be Self Financed and should be designed to empower the people who need them. So they no longer need them and they can can take care of themselves, make them Self Financed and turn them over to the States.
As far as new revenue, that should be about Tax Reform get all of the wasteful Tax Loopholes out of the Tax Code. And have a more Capitalist Economic System where the wealth people have in life is based on what they produce in society, instead of what Tax Credit they can get from Uncle Sam. And we can get our debt and deficit under control and get back to 18-21% of GDP and even spend less then that and more money for the people who need it.